Shared Ownership New Build Homes in London
Shared Ownership is a part-buy, part-rent scheme designed to help people buy a home in London. If you cannot afford to buy a property outright on the open market, this scheme lets you buy a share of a new build home and pay rent on the rest.
You usually buy a share between 10% and 75% of the home's market value. A housing association owns the remaining share, and you pay them a subsidised rent.
Because you only need a mortgage for the share you buy, your deposit is much lower. You only need a 5% to 10% deposit of your share's value, not the price of the whole property.
Shared Ownership Eligibility in London
To qualify for Shared Ownership in London, you must meet a few basic requirements:
- Your household income must be less than £90,000 a year (outside London, the limit is £80,000).
- You must be at least 18 years old and have the right to live in the UK permanently.
- You must be a first-time buyer, or a former homeowner who cannot afford to buy a suitable property now.
- You must not be able to afford a home that meets your needs on the open market.
An independent financial advisor will do a quick assessment to check that you can afford the monthly mortgage payments, rent, and service charges.
What Properties Are Eligible?
You can only use the scheme for specific properties:
- New build homes sold by registered providers, such as housing associations.
- Existing shared ownership homes sold by current owners through a resale scheme.
All Shared Ownership homes are leasehold. This means you own the right to live in the property for a set period, which is often 125, 250, or 990 years. The housing association or developer remains the landlord.
Staircasing: Buying More Shares
You can buy more shares in your home over time. This is called staircasing.
For example, if you start with a 25% share, you can later buy another 25% to own 50% of the property. Most leases let you staircase all the way to 100%.
As you buy more shares, the rent you pay to the housing association decreases. Once you own 100% of the property, you stop paying rent entirely. However, you will still need to pay service charges for building maintenance.
Shared Ownership Explained Step-by-Step
Buying a shared ownership home follows a standard process:
- Verify your eligibility: Make sure your household income is under £90,000 and you meet the first-time buyer rules.
- Find a home: Look for London new builds offering Shared Ownership. Many buyers choose off-plan properties to reserve a home before it is built.
- Apply: Contact the property developers or the housing association to submit an application.
- Get assessed: A specialised advisor will check your finances to confirm the share you can afford.
- Get a mortgage: Apply for a mortgage to cover your share of the property.
- Reserve the home: Pay a fee, usually around £500, to take the home off the market.
- Instruct a solicitor: Hire a solicitor experienced in the scheme to help you buy flats in London safely.
Shared ownership homes in London
All Shared ownership properties for sale →
Frequently Asked Questions
FAQ
Yes, you can sell your home at any time. If you own less than 100%, the housing association has a set period, usually 4 to 8 weeks, to find a buyer for your share. If they cannot find a buyer, you can sell your share on the open market. If you own 100%, you can sell the property yourself on the open market.
You must pay monthly service charges in addition to your mortgage and rent. These cover building insurance, cleaning of communal areas, and repairs. You will also need to pay for legal fees, mortgage valuation fees, and Stamp Duty when you buy the property.
Yes, it gives you more security. Because you hold a long-term lease, you cannot be evicted just because a landlord wants to sell the property. However, you must pay your mortgage and rent on time to avoid repossession.
Yes, but you can choose how to pay it. You can make a one-off payment based on the total market value of the property upfront, or pay Stamp Duty only on the share you are buying. First-time buyers may also qualify for Stamp Duty relief on shares up to £500,000.
Many housing associations, including Peabody, L&Q, and Clarion, build these homes across the capital. Popular areas include East London and South-East London, where many new developments are being built.
